US stock markets rise after days of turmoil

Getty Images

U.S. stocks opened higher on Tuesday as an uneasy calm returned to global markets after days of sharp declines.

The tech-heavy Nasdaq, Dow Jones Industrial Average and S&P 500 all posted early gains.

The rise follows mixed trading in the UK and Europe, with London's FTSE 100 initially rising before falling.

In Japan, the Nikkei 225 stock index jumped 10.2 percent, or 3,217 points, its biggest one-day gain after falling the previous day.

The stock market rout began on Friday after disappointing US employment figures for July showed the unemployment rate had risen, sparking fears of a recession.

There are also concerns that the shares of big tech companies – particularly those investing heavily in artificial intelligence (AI) – have been overvalued and that some of these companies are now facing difficulties.

Volatility intensified on Monday, spreading to Europe and Asia, where Japan's Nikkei 225 fell 12%.

But recently, on Tuesday, the global situation seemed more positive:

The Nasdaq, which had been the most volatile in recent days, was up about 2.4% early in the afternoon. The S&P 500 was up 2.2% and the Dow Jones was up 1.7%. In London, the FTSE 100 closed up 0.2% while the German Dax was flat and the French Cac 40 lost 0.3%. In addition to Japan, the stock markets of South Korea and Taiwan also recovered, rising about 3.5% after record declines.

“Markets were hit by a perfect storm over the weekend, with many factors combining to spook investors,” said Rachel Winter, partner at investors Killik & Co.

She added that nervousness over the US election had also contributed to the volatility, as “markets hate uncertainty”.

“Markets are expected to remain volatile”

Economists are divided over the outlook for the U.S. economy, with a number warning that it is premature to suggest the world's largest economy is heading for a slowdown.

If so, it would have wider implications.

“What happens in the United States economically and financially does not stay in the United States,” said economist Mohamed El-Erian, who is also president of Queens' College, Cambridge.

“The United States has been the main driver of global economic growth. The American consumer is a very important driver of economic activity. So the world as a whole would suffer if the United States went into recession.”

Fears of a recession have revived calls for the US Federal Reserve to cut interest rates at its next meeting in September to boost growth.

Last week, the Fed voted to keep rates in a range of 5.25% to 5.5% – the highest level in two decades – while other central banks moved to lower them.

Some experts believe this is a mistake and that stock markets are likely to remain unstable as a result.

Markets are very volatile right now and will likely remain so until the Fed's decision in September, so we don't rule out rapid swings in either direction, said Stefan Angrick, senior economist at Moody's Analytics.

“Japan's fundamentals are strong”

The sharp drop in Japanese stocks on Monday was partly driven by problems facing the country's economy.

Japan's currency, the yen, has strengthened against the U.S. dollar since the Bank of Japan raised interest rates last week, making Tokyo stocks – and Japanese assets in general – more expensive for foreign investors and buyers.

At the same time, inflation in Japan rose more than expected in June, while the economy contracted in the first three months of the year.

Commenting on the country's outlook, Jesper Koll, executive director of Monex Group Japan, said he still had confidence in the country.

“Japan's fundamentals are strong, there is no risk of recession and business leaders are determined to increase returns on capital,” he told the BBC.

Sources 1/ https://Google.com/ 2/ https://www.bbc.com/news/articles/c1d77xe2p26o The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos